Retail Banking in CEE: Exploiting the Potential of ... - Roland Berger
Retail Banking in CEE: Exploiting the Potential of ... - Roland Berger
Retail Banking in CEE: Exploiting the Potential of ... - Roland Berger
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IMPORTANCE OF MICRO BUSINESS – HIGH POTENTIAL WITH SEVERAL QUESTION MARKS 11<br />
ATTRACTIVENESS AND GROWTH POTENTIAL OF THE MICRO SEGMENT FOR<br />
<strong>CEE</strong> BANKS<br />
In 2012, <strong>the</strong> majority <strong>of</strong> <strong>the</strong> <strong>in</strong>terviewed banks regarded micros as a highly attractive<br />
segment compared to o<strong>the</strong>r client segments (e.g. private clients, corporate segment).<br />
Two thirds <strong>of</strong> <strong>the</strong> banks forecasted an even <strong>in</strong>creas<strong>in</strong>g importance (compare fig. 2).<br />
The background <strong>of</strong> this attractiveness is <strong>the</strong> identified growth potential which has several<br />
reasons:<br />
From <strong>the</strong> <strong>CEE</strong> banks' perspective,<br />
micros are attractive because <strong>the</strong>y<br />
represent growth potential <strong>in</strong> a<br />
stagnat<strong>in</strong>g market<br />
> As a result <strong>of</strong> <strong>the</strong> crisis, segments have become mature that used to be easier to<br />
serve and access <strong>in</strong> <strong>the</strong> past than <strong>the</strong> micro segment.<br />
> Micros have been neglected for not be<strong>in</strong>g a homogeneous set <strong>of</strong> clients and <strong>the</strong>refore<br />
<strong>the</strong>ir bank<strong>in</strong>g penetration is low (especially <strong>in</strong> loans).<br />
> Only a limited number <strong>of</strong> micro clients were not able to reach <strong>the</strong> critical mass<br />
required to make banks feel comfortable.<br />
> The micro segment currently represents a large number <strong>of</strong> non-tapped bank<strong>in</strong>g<br />
potential.<br />
> Many micro-company owners are affluent clients thus <strong>of</strong>fer<strong>in</strong>g potential both at<br />
<strong>the</strong> bus<strong>in</strong>ess and <strong>the</strong> private side.<br />
21<br />
61<br />
21<br />
69<br />
Source: <strong>Roland</strong> <strong>Berger</strong> Strategy Consultants<br />
The majority <strong>of</strong> <strong>the</strong> banks with an advanced micro-bus<strong>in</strong>ess strategy reported this segment<br />
as be<strong>in</strong>g one <strong>of</strong> <strong>the</strong> most pr<strong>of</strong>itable with<strong>in</strong> <strong>the</strong>ir <strong>in</strong>stitution. Generally <strong>the</strong>se banks<br />
particularly focus on def<strong>in</strong>ed micro sub-segments and use customized micro risk-assessment<br />
scor<strong>in</strong>g-models.